I wish I had more visibility on nostr. I get pretty much nothing on here when I post content

Wait: Don’t we have to mine this huge pile of Tx eventually, for everyone to REALLY get their coins?

If we collaborate, NO! We can build alternate spend paths. But that’s a whole thread.

You now understand covenants 101: commitments made *without always touching the chain*.

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Instead of each L1 Tx being one ownership change, we can plant a whole tree full of many users, all sovereign, but only using 1 UTXO of block space.

If the leaves were lightning channels, you can even be spending sats freely - only updating the tree rarely for channel closures.

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What if each layer paid many people, not just one?

We can go as deep as we can coordinate in advance.

When Alice makes that ONE payment on chain, EVERYONE in the tree is paid:

The guy before them CAN’T take coins back, and keyholders can all exit whenever they want.

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We burden the chain with only 1 transaction, yet get more than 1 ownership change, or said differently: irreversible commitments.

What if Charlie did the same thing in creating HIS address, with someone HE needs to pay?

What if they did it too?

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If you choose to ACCEPT payment via CTV, the payer needs to pass you the Template for every step between your coins and the mined Tx.

That’s what you need to fully exit if you want. We always have to store data: private keys, channel states for LN, now spend paths for CTV.

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If CTV was live, Bob can make his address key be a signed but unbroadcast Tx sending to Charlie’s address. Nodes will reject any other spend as invalid.

If Bob hands that Tx to Charlie, he can SEE Bob can’t spend them differently. And pay himself out any time, without asking Bob.

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OP_CTV, Check Template Verify, proposes a new primitive added to the family: check that the SPENDING transaction, hashed, matches one we defined.

It’s kind of like using Tx data as the key for the lock, instead of a private key. And if YOU build the address, YOU decide the terms.

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You build a transaction with the To addresses, attach your UTXOs, and show whatever’s needed to unlock them. Then broadcast.

Before it’s included in a block, Bob can’t be SURE he’ll get the coins. EVERY ownership change MUST touch the chain to become immutable.

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There are other things we can use to make our locks: extra keys, relative or fixed timelocks, & logic to combine them. The address encodes it all.

(Technically, they’re all actually scripts - the different functions used inside: OP_CheckSig, OP_Multisig, OP_CheckLocktimeVerify…)

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Addresses are built from the spending conditions YOU want for YOUR coins. You have a key, you define a lock that it opens, that IS your address.

Coins (UTXOs) sent to the address must be unlocked to be spent. You defined the lock, you decide what opens it, nobody else.

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Welcome to Covenants 101, with a focus on CTV.

What are they? Is this an attack on bitcoin? Can the government lock up all our coins?

Without an accurate mental model of what's actually going on, it's hard to reason on what they can and can't do.

So let's walk through it. 📩👇

So Rearden went through the process to creating a version of txhash that was CTV+APO, here's a table that shows what's hashed.

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The script itself should look relatively normal, but there'll be an extra associated 32 byte hash that is used to evaluate the script when you're spending from it.

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The guys are trying to get the minsc branch that supports CTV to compile so it's easier to build PoC's. Trying to look at these clips in bare script is going to be a near nightmare as you can build trees and many exit options. Here Jeremy talks about splitting and evicting a single individual.

https://nitter.net/JeremyRubin/status/1744140391249506504#m

Here's a split and evict for a payment pool

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Here's a payment pool that was compiled in Sapio

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Here's the txhash with CTV+APO by Rearden. He ended up abandoning it in favor of Template Key which is a 33rd byte extension to CTV but it isn't anywhere near ready and needs probably years of bikeshedding to finalize it. He's in favor CTV now then later extending to either TXHASH or CTV as necessary.

https://gist.github.com/reardencode/2aa98700b720174598d21989dd46e781

Sorry about the fire hose of information, there's just so much here.

Weird. It was set but when I went to the edit settings, it was blank. I entered it again and appears in the settings now. It fix it on your end?

Makes sense. Still learning nostr etiquette. Here's the nitter links

Covenants 101

https://nitter.net/OwenKemeys/status/1741575353716326835#m

Covenants 102

https://nitter.net/OwenKemeys/status/1744181234417140076#m

Owen made them up for his Covenants 101 and Covenants 102 threads over on X.

101

https://twitter.com/OwenKemeys/status/1741575353716326835?t=cgvZGJoMLv9P5DGPV5Sq3A&s=19

102

https://twitter.com/OwenKemeys/status/1744181234417140076?t=jnW9Wd89NwRT8StZ0SQqxA&s=19

102 covers the more advanced use-cases such as Cold Channels whereas just covers the basics such as Congestion Control. Let me know if these help

Have you had time to think on it?

The Scroll of Truth!

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nostr:nevent1qqstsufwl2fvjdza3lqlfhqnks38eaexdg3gpw6av3e56r6gjypm88qpz3mhxue69uhhyetvv9ujuerpd46hxtnfdupzpaaghceem4wthdh7phz86svzez9rnj3m00pwgm9r4c5vpu5cejtlqvzqqqqqqy5z4pma

I discuss LNHANCE here which will further improve on the concepts like Cold Channels.

nostr:nevent1qqs0f89vu4pqjhgtvth33g47k7l8mg77nz5dey5chrrvs00hpr94spcpz3mhxue69uhhyetvv9ujuerpd46hxtnfdupzpaaghceem4wthdh7phz86svzez9rnj3m00pwgm9r4c5vpu5cejtlqvzqqqqqqyg0au0h